ACCRA, Ghana–A financial expert and board chairman of the Ghana Co-operative Union (CUA), Dr Charles Anane, told credit unions that chief executives of all CUs whose union’s collapse under their watch will be arrested and prosecuted.
To this end, the Union is collaborating with the Police CID to ensure quick prosecution of such CEOs, according to Radio Ghana.
Speaking at the closing of the 20th Educational and Biennial Conference of the Ghana Co-operative Union in Accra, Radio Ghana quoted Anane as saying the notion that chief executives of credit unions that collapse their businesses are above the law must be cleared.
He said the savings of workers cannot be taken for granted and so persons who are put in charge to manage it must be proactive, Radio Ghana said.
Nana Kwesi Agyepong , CEO of Ghana Co-Operative Credit Union, said the credit union business is profitable if the savings of workers are put in proper investments.He urged unions to encourage their members to be contributors saying that in the credit union business, the larger the merrier, Radio Ghana reported.
Meanwhile, Navrongo Assemblies of God Co-operative Credit Union has announced its readiness to prosecute members who fail to pay back what the CU’s board of directors calls “over-aged loans,” according to GhanaWeb.com.
The credit union’s chairman, Augustine. A. Atanga, served up the warning at the CU’s 10th Anniversary and 5th Annual General Meeting (AGM) in the Upper East region. The meeting was themed, “With Savings, Your Dreams Thrive.”
“One of the problems facing financial institutions is loan delinquency and our union is no exception. We have over-aged loans which are sitting in our books and creating a high loan delinquency rate for our union,” Atanga was quoted by GhanaWeb.com as saying. “Processes have been put in place to prosecute all loan defaulters this very month of May 2018. We would also employ the debt collection agents to engage the recalcitrant ones and collect our money for us.
“The board, loans committee chairman and the staff met some members and their families to discuss processes of repaying their loans,” he continued. “I am glad to report that some of them complied and have paid substantial amount of their loans. We want to also ask that all co-operators, who take delight in paying only interest element with the excuse to come and clear the balance when the repayment date is due, should be stopped henceforth. Staff who agrees to such transactions will be severely sanctioned.”
The comments came following the collapse of a microfinance company with which many people had done business.